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1031 Exchange Explained

A 1031 exchange is the IRS approved method enabling the deferment of federal (and most state) capital gains taxes through the sale and direct reinvestment of all proceeds into other like kind investment property investment property. 1031 Exchanges are typical sales and purchases that involve the same exact ingredients as any other sale or purchase, without the capital gains. The only real difference is the property owner is increasing his or her selling and buying power by electing to rollover their investment into another like kind 1031 exchange property. No other aspects of the transaction are affected.

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